Martin Flanagan

John Menzies’ management will be quizzed at its interim results this week for an update on talks about a possible merger between the Edinburgh group’s distribution arm and DX Group.

The waters were muddied last month when Petar Cvetkovic and Daljit Basi, DX’s chief executive and finance director, stood down from the parcels business after a review of operations.

Shortly before that there was the added complication of a since-discontinued City of London police investigation into allegations against DX Group’s private document delivery service.

Meanwhile, in a separate development, Gatemore Capital Management, which owns 21 per cent of DX, withdrew its opposition to the merger plan in June after saying the revised terms were more attractive.

The revised agreement would result in DX investors owning 35 per cent of the enlarged share capital, rather than the 20 per cent first proposed in March.

At Tuesday’s results meeting, Menzies is also expected to give guidance on how the integration of US aviation services firm ASIG is progressing, a $202 million (£158m) deal this year hailed as “transformational” by the Scottish group’s management.

The group is also expected to provide more details about efforts to improve profit margins at under-performing parts of the aviation division.